The collet assembly for a welding or cutting torch includes a slotted collet for receiving the electrode in combination with a collet body for centering and fixing the position of the electrode within the torch head. Heretofore, it was the conventional practice to machine a taper in the slotted end of the collet to match a complimentary shaped conical wall in the collet body. The collet was also machined to form an annulus between the collet and the collet body along one section of its length and to provide a shoulder conforming to the diameter of the collet body at the opposite end of the collet. To manufacture a collet having these features it was necessary to perform a multiple number of machining operations including drilling, reaming, countersinking and beveling. These operations had to be performed with a relatively high degree of accuracy so that the electrode would be centered accurately within the torch body. Since the collet is intended to be a disposable part which performs an essential function the manufacturing cost of this item is very significant to the overall cost of the torch.